A review completed last year by the former chairman of the US Federal Reserve, or Fed, found that the bank’s economic forecasts have “deteriorated significantly in the past few years due to out-of-date software and excessive incrementalism.”
However, the analysis led by Dr. Ben Bernanke stated that the “unusually large forecasting errors” were “probably inevitable.”.
It said that the issue was not specific to the Bank and that it affected all central banks as well as private forecasts.
Global shocks that were large and unexpected harmed economies everywhere and raised prices.
